Overview Dutch crowdfunding market after ECSP deadline
Last Friday was the deadline for the new European Crowdfunding Service Provider deadline. Crowdfunding platforms that were not able to obtain the license are not allowed to publish new crowdfunding projects within Europe. Within the Netherlands, almost all of the biggest platforms were able to get the license in time.
According to the Dutch financial market authority, AFM, at least nine Dutch platforms did not have their permits in order on time. As a result, these crowdfunding platforms can no longer provide their services to users. They can also try to complete the application process at a later moment, in order to start their services again.
In the week leading up to the deadline, Duurzaaminvesteren.nl, October.eu and Sameningeld.nl obtained their permits. Last Thursday, Mogelijk also received its ECSP license. And last Friday, Collin Crowdfund was also able to get the permit.
Uniformity of a growing market
As of November 2021, the European Crowdfunding Service Provider (ECSP) has been in force, aiming to ensure harmonization and uniformity of EU capital markets. To obtain the permit, platforms needed to provide their users with more insight into the available projects on the platform, to mitigate risk. Other requirements include effective opterations, a reliable board, prevention of conflicts of interest and careful due diligence.
‘The Dutch crowdfunding market was worth 1.08 billion euros in 2022.’
It is understandable that the market needs to become more strictly regulated and professionalized, given its growth. Within the Netherlands alone, 1.08 billion euros was raised through crowdfunding in 2022. This was a 48 percent increase over 2021, when 730 million euros was raised.
Activities in multiple European countries
Platforms that have obtained the permit can now launch crowdfunding campaigns in multiple countries in Europe. In the Netherlands, for example, large platforms such as real estate platforms Raizers and Estateguru, or venture capital platforms like Crowdcube and Seedrs, competition is likely to increase next year.
Dutch crowdfunding platform Oneplanetcrowd has already announced plans to become active across the border. It merged with German platform Invesdor last year. . It wants to operate under the name Invesdor after completing the merger. It will then continue as a pan-European platform with offices in Berlin, Helsinki, Vienna and Amsterdam, among others.
‘The market has become more mature and transparent.’
“With these European laws and regulations, the market has become more mature and transparent. We would have loved to crowdfund companies like Fairphone across the border, but unfortunately, when we raised that funding four years ago, that wasn’t yet an option”, said Maarten de Jong, Managing Director of Oneplanetcrowd
Consolidation in the industry
The KOM Group, the owner of Dutch platforms Kapitaal op Maat and Capital Circle agrees. “The permit has already brought us a lot in the past year. Many new investors and also an increase in the number of successfully founded projects. Furthermore, we notice a consolidation within the industry. We have already successfully brought Capital Circle under the Kapitaal op Maat license and expect further consolidation over the next 6 to 12 months.”
‘The permit has already brought us a lot in the past year.’
With a total of 20 million euros raised and 100 projects funded, the Group has had its most successful year since it was founded. The Group also wants to operate internationally in the future.
Dutch market could double
Other major Dutch platforms want to focus on the Dutch market. According to Investeerdersnl, this is justified, as crowdfunding in the field of real estate and corporate finance still occupy a small market share. “If the market continues to professionalize partly thanks to this license, and companies are better able to find their way to crowdfunding platforms, it can certainly double a few more times purely with Dutch funding,” says Dirkjan Vis, owner of Investeerders.nl.